EXIAR and Transkapitalbank conclude first working capital financing insurance agreement
The Russian Agency for Export Credit and Investment Insurance (EXIAR) and Transkapitalbank have concluded a working capital financing insurance agreement.
As part of this agreement, EXIAR will insure a loan issued by the Transkapitalbank’s Voronezh branch to the Russian exporter Metelitsa Trading House, Ltd. The company exports beet molasses to Turkey.
EXIAR’s working capital financing insurance is designed to increase access to financing for Russian exporters — particularly small- and medium-sized enterprises. EXIAR also performs an expedited review process of the project. Before the deal was reached, Transkapitalbank and EXIAR signed an Agreement on creating and enacting a financing program for export-oriented small- and medium-sized enterprises and other smaller exporters.
The Russian Agency for Export Credit and Investment Insurance (EXIAR) was established in 2011 as an open joint-stock company. EXIAR's mission is to support Russian high-tech exports by insuring export credits against commercial and political risks, as well as Russian investments abroad against political risks. Vnesheconombank is the sole shareholder of EXIAR. The agency's charter capital is RUB 31 billion. Since November 2014 Eximbank of Russia, a Russian specialized government–owned export–import bank, has been a subsidiary of Russian Agency for Export Credit and Investment Insurance (EXIAR).
Transkapitalbank is a full-service bank that offers a wide range of banking services to legal entities and individuals in 20 regions around Russia. Transkapitalbank is one of the 50 largest banks in Russia in terms of assets and shareholders' equity. The bank currently possesses over RUB 165 billion worth of assets and more than RUB 27.5 billion in equity. The bank ranked tenth on the list of the 100 most reliable Russian commercial bank as of January 1, 2015, published in the weekly business magazine Profile. The bank’s primary shareholders are: top management (55%); the European Bank for Reconstruction and Development (28.59%); German investment company DEG (9.14%); and, the International Finance Corporation (7.7%). The bank has an international credit rating of B1 by Moody's Investors Service. The bank’s primary activities center on financing large corporate clients, small- and medium-sized businesses, home mortgages, as well as checking and savings services for individuals and legal entities. One of its new focuses is the formation of the forum "A Bank for Banks" for financial institutions in the Eurasian Economic Union and the CIS. The program offers a comprehensive approach to creating a line of products that includes checking, treasury operations, trade finance instruments, and the ability to organize syndicated loans. Financing Russian exports under EXIAR’s insurance coverage is one of the bank’s most popular products.
Metelitsa Trading House, Ltd. was established in February 2002. Since the company’s conception, it has increased its production volumes with each passing year. The company has grown from supplying beet molasses from sugar plants to local (Russian) consumers by ground transportation (such as tanker trucks and the railroad), to working abroad. The company’s clients include a great deal of well-known companies from Germany, Italy, Ukraine, Kazakhstan, Great Britain, Finland, and Spain. Over the course of 2006-2007, 30 export contracts were filled. Exports accounted for 45% of the company’s revenue in 2007. In that same year, Metelitsa Trading House started delivering beet molasses to ports in Italy, Spain, and Turkey on ships with capacity to carry 1,500-15,000 tons, departing from the Yeisk Seaport (with both CIF and FOB agreement models), Rostov-on-Don, and Taman Seaport.
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